About This Chapter
Taxation in Microeconomics - Chapter Summary
If you are struggling to grasp the concept of taxation in microeconomics, check out this chapter to improve your understanding of topics like the types of taxes and the impact of the U.S. tax code on microeconomics. We break up the information into individual lessons, which can be completed in less than 10 minutes. Every lesson includes all the vital information you need to know to understand that taxation topic. When you complete the chapter, you will be prepared to:
- Define and discuss the systems and principles of taxation
- Relate information about the U.S. tax code
- Describe the formula for and definition of tax incidence
- Discuss how to calculate the average tax rate
- Establish ways the government uses subsidies and taxes
1. Principles and Systems of Taxation
In this lesson, you'll gain a better understanding of how our tax system works. Look into the different levels of taxation from the federal government to state and local governments.
2. Types of Taxes & the US Tax Code: Impact on Microeconomics
I know what you're thinking - it's bad enough I have to pay taxes, now why would I want to sit through a lesson on them. However, understanding more about taxes may help you convince the government that you don't need so many of them...
3. Tax Incidence: Definition, Formula & Example
In this lesson, we'll define the concept of tax incidence. We'll also review the factors needed to determine tax incidence as well as look at the formula for tax incidence and review an example of how it's determined.
4. Average Tax Rate: Definition & Formula
Knowing the average tax rate in a progressive tax system is useful in understanding your tax burden. In this lesson, you'll learn about the average tax rate, related concepts, and how to calculate it. A short quiz follows.
5. How the Government Uses Taxes & Subsidies
This lesson will explain how the government uses tax revenue. It will also discuss the purpose of subsidies, as well as public services and infrastructure.
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Other chapters within the TECEP Microeconomics: Study Guide & Test Prep course
- Basic Economic Concepts
- Supply & Demand in Microeconomics
- Consumers, Producers & Market Efficiency
- International Trade in Microeconomics
- Public Sector Economics
- Costs in Economics
- Market Structures
- Profit & Capital Allocation
- Labor Market Economics
- Theories & Trends in Microeconomics
- TECEP Microeconomics Flashcards